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Tuesday, 19 April 2016

Govt drops plan to bid out unused air traffic rights

New Delhi: The civil aviation ministry has dropped the proposal of auctioning unused bilateral traffic rights on international routes, as per a draft on National Civil Aviation Policy circulated for inter-ministerial consultations last month, official sources said.

Domestic carriers as well as the International Air Transport Association (IATA) have strongly opposed plans to auction unused bilateral rights.
The government has also tried a balancing act on replacing the much-debated 5/20 rule for flying overseas, while at the same time giving older carriers the flexibility to withdraw capacity deployed on unviable routes which is in excess of the minimum requirements, the sources said.
The existing rule of domestic airlines having minimum five year experience and 20 aircraft for being eligible to fly on international routes is proposed to be replaced by only 20 aircraft requirement and a minimum of 20 per cent capacity being deployed domestically.
If approved, the proposed policy will enable new carriers like AirAsia India and Vistara — both operated by the Tata Group via joint ventures with foreign partners — to operate internationally without having the minimum five-year experience as required in the existing regime.
To Read the News in Full 17/04/16 Sunny Verma/Indian Express
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